The time has passed when it was difficult to trade in different currencies. Today banks can offer separate accounts for each type of currency, as well as multi-currency accounts that allow you to work with monetary units of different countries. If you make transactions in several currencies, we suggest using a multi-currency account. 

In Internet banking, you can conveniently add additional currencies to your company’s existing account or open a new current account. It looks simple. But, what is a multi currency account? Let’s review this topic in more detail together with PaySaxas experts. 

Introduction to Multi-Currency Accounts

A multiple currency account will give you access to international banking details in the European zone, the United States of America, Australia, Britain, etc. You will be able to receive money transfers from all over the world. 

Before we get into specifics, let’s understand the definition of this concept. It is a type of account that allows you to make payments in different currencies. That is, you can receive, store, and spend money in dollars, euros, pounds, etc.

Detailed Explanation of Multi-Currency Accounts

Let’s give a definite answer to the question, what is a multi currency account? It is an account that can hold several currencies at once, for example, the American dollar and the Euro. It has numerous sub-accounts. Each sub-account holds funds in one currency. 

But at the same time, all funds are kept in one place, in your multiple currency account, under clear management, whether you are an individual or a legal entity. All operations are performed at lightning speed. This is what attracts many customers today. When you work inside your account, all transactions take less than a minute. 

How Do Multi-Currency Accounts Work?

After you have decided on the bank or payment system where you want to open a multi-currency bank account, you go through the registration procedure. This stage is not difficult, but it may take some time. It all depends again on the platform you have chosen for your daily work.

What documents might be required for registration?

When you decide to open a business account, don’t forget to prepare the basic documents that you will definitely be asked for. Here’s a short list: 

• Proof of director’s identity (passport, ID card, or driver’s license); 
• Proof of director’s address;
• Proof of business address (rental agreement, utility bills in the company’s name, etc.);
• Business name;
• Proof of business registration (documents that confirm the official registration of the legal entity). 

This is not a complete list of what you may need. Please note that the full list of documents should be requested from the bank or payment system where you are registering. 

Briefly about the registration process

From the beginning, you fill out the registration form. This is standard practice. There you will be asked what currencies you work with to give you access to the bank details of the currencies you need. When you are already verified as a client, you have access to the profile, you can start working with it. 

There’s nothing complicated here. Each currency has its own banking details, as well as the data you need to add for the transaction. Also, you have the option to convert one currency to another within the system. This is one of the advantages of a multi currency account. 

Real Life Example

Let’s give an actual example of how a multi currency account works. You live and conduct your business in Belgium. Therefore, you receive payments in Euro. But, one day, you need to pay a service provider in the US. It’s an easy task when you have a multiple currency bank account. 

You exchange Euro to Dollar at the rate on the day of the exchange and receive the amount in US dollars in your USD bank account. Next, you enter the bank details of the US recipient and send them the money from your account. Since the transaction is done through one channel and in one currency, crediting the recipient’s account can go quickly. 

Pros and Cons of Multi-Currency Accounts

A multi currency account was designed and implemented to provide additional opportunities and comfort for day-to-day management of the financial activities of companies. As with other products and services, experts highlight the following advantages and disadvantages:

Pros

• The most important advantage is the ability to capitalize on sharply changing market conditions at any time. The rates of individual currencies can change rapidly, and having an account in several currencies will allow a participant in the trading process to instantly transfer his funds between accounts and receive income from positive currency changes.
• Convenience. It is enough to have one multiple-currency account for transactions in different currencies. It is much easier to track your receipts and expenses, receive virtual transfers from other countries, travel, or buy things on foreign websites.
• Reducing the cost of banking services. Banks usually charge a fee for servicing accounts. That is, the more accounts, the more expenses. One bank account with multiple currencies can replace all the others and save you money.
• Payment flexibility. Money is very easily and quickly converted within the account, allowing you to pay for goods and services with local currency.

Cons

If we talk about the disadvantages of having a multi currency account, it can be said that they are practically non-existent and they are not significant. Here are a few of them:

• The process of opening such an account can take a long time for some providers. Before starting the registration process, please find out how long it will take from filling out the form to receiving an active bank account.
• Some providers ask for a huge amount of unnecessary documents to open such an account. There is a standard set of documents that is customary to submit when registering on platforms. But some banks may require a mountain of additional paperwork, scaring away customers.

Do You Need a Multi-Currency Account?

Many people often ask, why do I need a multi currency account? It’s a normal situation. It is not always immediately obvious what aspects of such a service are. That’s why you may need a multi-currency account for: 

For Personal Use

A multi currency account is a convenient financial instrument that can make traveling, business trips, or shopping in different countries more comfortable and profitable. Also, such a service can offer:  

• an account is easy to open and use; 
• transactions come in and out of one account;
• fast international transfers
• you can buy just about anything, including insurance. 

For Business Use

A multi currency account for business offers the following benefits: 

• accounting/tax accounting becomes easier when you deal with one account;
• reducing losses when converting currencies and servicing multiple accounts;
• no unnecessary conversions. Funds are credited to the multicurrency account in the currency in which they were sent. Thanks to this, you will not spend money on commission for additional conversions.
• reducing expenses on bank services. Banks usually charge a fee for servicing accounts.

Who Is Qualified for a Multi-Currency Account?

It is simple. Every person and legal entity has the opportunity to open a multi currency account in the banking system. In general, there are no particular limitations on the ability to do so. 

You choose an organization that is convenient for you, a payment system, and apply for opening. Next, the company/bank will review your documents to make sure they meet their rules and regulations as well as the client’s general standards. 

Fees Associated with Multi-Currency Accounts

Funds are credited to the multiple currency account in the currency in which they were sent. Thanks to this you won’t spend money on fees for additional conversions. Banks usually charge a commission for servicing accounts. Still, it’s all individual. Today there are many options in the world, both traditional banks and payment systems, where it is possible to open multi-currency accounts. 

At the same time, these structures themselves decide whether to charge a commission for account maintenance, for each transaction, for conversions, and so on. Further, you will be able to familiarize yourself with examples of financial institutions that provide such services for various commissions. Choose what is more acceptable to you.  

An Overview of Best Multi-Currency Accounts

Previously, we were able to answer the question, what is a multi currency account? Moving on. If you need to get a multi currency account quickly and easily, it is better to use payment services. All the features you need can be obtained without bureaucracy. Let’s explore them in more detail.

Wise

This is a popular neobank that gives you the opportunity to get a multi currency account. The payment system allows you to transfer money to 80 countries, exchange currencies, and receive transfers. Business clients can also send and receive payments.

Key Features

• Wise card works in more than 200 countries around the world.
• Pay for goods and services in 53 currencies.
• Accepting payments. 9 currencies are supported.
• Ability to transfer both from a bank account and a card account.

PaySaxas

PaySaxas is a fintech modern company for the borderless economy. It debuts a unique payment experience, focused on international trade. Our fintech company provides businesses in emerging markets with the financial services and products they need to thrive. They include multi currency account for business, worldwide payments, and currency exchange.

Key Features

• Secure, cross-border payments in fiat and crypto, including USDT. 
• Global trade with PaySaxas secure mobile app. 
• 24/7 Relationship Managers via major messenger platforms.
• Fully remote, high speed on-boarding for 100+ jurisdictions.

Revolut

Revolut is a fintech company that enables fast, low or even no fees cross-border transfers in 30 currencies. In case of transfer in one currency system, no commission is applied. This is another advantage together with the multi currency account that the company offers. It is free to open a business account and there is no monthly fee in the initial package. 

Key Features

• Money transfers without commission, with conversion at the interbank rate.
• Payment for goods and services.
• Acceptance of payments (in 28 currencies without conversion).
• Multi-currency account for business.

Payoneer

The Payoneer payment platform allows you to make international payments, including money transfers, without opening a foreign bank account. With its solutions, marketplaces, micro stocks, and businesses can send payments to one or hundreds of recipients easily, cheaply, and securely. It is one of the most popular banking platforms today. 

Key Features

• Convenient and clear interface of the multi currency account;
• Possibility to keep money in dollars/euros on the account. You do not depend on constant changes in the exchange rate, and you do not need to convert your money into the national currency. Availability of a Payoneer personalized foreign currency debit name card.

Airwallex

Airwallex is a fully licensed and regulated payment system. A business multi currency account in the Airwallex payment system can be opened by both EU resident and non-resident companies. 

Key Features

• Hold and exchange 12+ currencies;
• With Airwallex, you can send money to over 150 countries in over 40 currencies in 2 methods: SWIFT and Local Transfers;
• Airwallex allows businesses to integrate with accounting software such as XERO, Quickbooks, and Netsuite and ecommerce platforms like Amazon, Shopify, and Lazada.

How to Apply for a Multi-Currency Account?

Before you apply to open a business account, you need to decide which bank or payment system you will use. There are many options in the world today where they offer multi-currency accounts. What is still worth paying attention to. 

Main criteria for selecting a bank by clients

• Reliability. This is the first thing you should pay attention to when choosing a payment platform. Look at the bank’s credit ratings, study the bank’s website: what programs and opportunities are available, then read reviews on forums and ask your friends.
• Versatility. Consider how such an institution can help you in your business. What the bank offers for account holders who want to take out a loan, make a deposit, or contact the bank for many summers with a mortgage agreement. How much does the service cost, how long does it take to formalize, and are there any benefits and bonuses?
• Thoughtfulness. We recommend paying attention to how convenient it is to be served in the bank. Is the mobile app and online banking convenient? How does the call center work and is it possible to get advice, avoid a call, and talk on the phone?
• Working with business clients daily. Entrepreneurs work for themselves and their profits depend on the continuity of their work. Therefore, banks and payment systems must be constantly improving, work without technical problems, and have 24/7 support in case of need. 

Opening process

1. First, you need to decide on a bank or payment processor. 
2. Go to the company’s website and select the convenient registration form. Most often, today, applying for multi currency accounts opening is done online. Moreover, many banking organizations allow you to install an application on your phone and open an account through your smartphone. 
3. You click the register button and follow the instructions on the form. 
4. In the case of legal entities, be prepared to provide the following information: company name, date, and number of company registration, tax number, company address, telephone, and e-mail. 
5. Once you have entered the previous details, the system will certainly ask for accompanying documents like proof of company registration, proof of business address, director’s identity etc. Upload them.

That’s pretty much it. If the bank or payment system has any questions or requests, they will contact you directly. 

Restrictions of Multi-Currency Accounts

Such accounts may also have several limitations to consider. These aspects can affect your day-to-day business operations.  

• Many banks and payment providers like to put a limit on the amount of payment per day. That is, you cannot send more money than the bank allows in one day. 
• You can’t send money from multi currency accounts to specific countries around the world. This is standard practice for banking organizations. There are countries, such as the russian federation, Iran, Morocco, and others, where transfers will be considered illegal.
• Also, there are business activities, such as gambling, which banks and payment systems won’t accept as business activities of the company.  

Multi-Currency Accounts in the UK

Doing business within the UK has become a popular pastime today. More and more entrepreneurs are organizing their companies in this region. Therefore, the bank account issue is at the top of the organizational chain. This is where such an option as multi currency accounts comes to the rescue. 

Can a multi-currency account be opened in the UK?

Today, many UK banks and payment processors provide such a service. Since local and foreign entrepreneurs are used to doing business not only within the country, access to different currencies is of particular value. 

Advantages of a multi-currency account in the UK

The following aspects should be mentioned: 

• Reduce transaction costs; 
• Manage foreign exchange;
• Convenience and simplicity of multi currency accounts within the UK;
• Speed of sending and receiving funds. 

How to open a multi-currency account in the UK

There’s nothing complicated here. First, you need to decide in which financial organization you are going to apply for and open a multi currency business bank account. Let’s take Revolut as an example. The company offers pleasant business conditions as well as fast onboarding. 

The client doesn’t even need to visit a bank branch. Everything is done online. You will need to upload company statements, registration documents, as well as director ones. That’s it. After successful verification, you will be given access to an account with different currencies. 

Conclusion: Is a Multi-Currency Account Right for You?

Today we have tried to answer the question, what is a multi currency account? So, it is a convenient financial online instrument that can make traveling, business trips, or shopping in different countries more comfortable and profitable. Such an account can be opened for both personal and business purposes.  

If you need to open an account for a legal entity, this option is the most optimal for today. It is enough to have one account for transactions in different currencies. It is much easier to keep track of your receipts and expenditures, receive transfers from other countries, and keep financial records. 

The list of potential financial structures that are willing to offer such a service is impressive. Familiarize yourself with their features and make a decision that is beneficial to you. We hope the insight of the topic has become much better for you after reading the article.